POA (updated 5 feb 09)
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Originally posted by Master -_-:
perhaps the way POA students and tertiary accounting students think are different..I, for one, immediately can identify with M13's working..though Provision a/c and normal a/c are separate accounts altogether, the provision balance can be immediately be brought forward as an opening or closing balance for that account you have provided provision for..as easier understanding for subsequent B/S and other statements.
It's quite different. I took one module in accounting in NUS, then I borrowed a POA book to see see... The usage of terms and calculations are quite different
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@_@
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Originally posted by maurizio13:
You haven't answered my question.
Why is it not HP Creditor instead of Bank?
As the question didn't mention how they paid for the vehicles.
the question didnt mention creditor name. it did mention the price of the vehicles. for o level, we assume its paid by cash/bank if no have mention any creditor.
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Originally posted by maurizio13:
On the other hand, since they didn't mention how it's being paid for, it can also be HP Creditor. It is normal for companies to pay for assets under leases instead of upfront cash.You can assume bank, likewise can also assume that it's HP Creditor, so even if you put HP Creditor in your Vehicles a/c, also acceptable.
you think too much like uni way haha -
we are talking about o level here M13. can i request that all workings should be done in o level standard, if this thread is to help o level students
for o level,
got amount got company name means its buy from credit
got amount no company name means buy from bank/cash.
think in o level mind if you want to help thanks.
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but i believe this thread is for olevel students. dont take it as this is uni standard. o level is not so complicated. please dont confuse or mislead the o level students here.
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haha i understand you are trying to help but using uni way which is correct may lead to points being deducted at O levels, you know?
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indeed i have. my amount might been wrong, but my presentation is 100% correct, for olevel standard. if you confusing or misleading students is not your intention, please do your working in o level standard as i think o level has more time than in uni, if you cant open up 3 disposal a/c. anyway, for o level, we are only tested on one type of fixed assets. vehicles means vehicles, no have car or lorry or whatever. this is the o level standard so we only need to open up 1 disposal a/c and not 3.
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Apologies; but for uni, normally we assume to be cash/bank if the Q does not state anything, and we will actually state this assumption in our ans for ease of answering the Q.
For hire purchase, first payment and number of instalments are required. For leasing i.e. finance (there's also another lease called operating lease), there is also a need to know the interest rate, as well as whether it's payment in arrears/advance, plus, calculation of finance costs (under Current Liabilities and Long Term Liabilities) etc. More steps are involved.
As mentioned in the thread, in uni exams, time is precious, thus unless otherwise stated, students do usually use and state the assumption of payment in cash/bank as well. -
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damn i hate leasing...must get NBV la..IRR la...
esp if abit of finance is involved..nbz -
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Not sure if u read my post properly, but what I have wrote is as follows:
For leasing i.e. finance (there's also another lease called operating lease), there is also a need to know the interest rate, as well as whether it's payment in arrears/advance, plus, calculation of finance costs (under Current Liabilities and Long Term Liabilities) etc. More steps are involved.The interest rate etc pertains to the Finance Lease, not the operating lease. I have already stated there as 'There is also another lease called operating lease' in brackets.
Kindly note the word 'also'; in addition, I have indicated as 'For leasing i.e. finance' --> meaning finance lease.
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going a bit off for O levels huh
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Hiaz~~
I know the placement of assets is different for finance and operating lease, due to the ownership issue.
U gave me a feeling that I must write in proper essay style when I post anything up here. Duhz~~
I added in the brackets of operating lease as an extra info that apart from finance lease, there is also another leasing known as operating lease. -
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